Twitter’s flight just got grounded. Again.
Twitter stock took a hit on Friday, dropping an initial 8 percent on the news that Salesforce would not be buying the microblogging platform. This brought it to its lowest level since August before recovering slightly. Meanwhile, Salesforce stock rose on the news.
Salesforce became the most recent bidder to reject Twitter after Salesforce chief executive officer Marc Benioff reportedly said the software company was not interested in taking it under its wing.
In an interview with the Financial Times, Benioff said, “it’s not the right fit for us for many different reasons,” adding that, “you’re going to look at price, you’re going to look at culture, you’re going to look at everything.”
Other recent suitors who’ve reportedly declined Twitter’s advances include Google and Disney. Salesforce, which provides a suite of cloud-based customer relationship management services, was seen as a more likely contender due to Twitter’s increasing positioning as a customer service tool.
According to Twitter, advertisers report that more than 80 percent of their inbound social customer service requests happen on Twitter. Recent research by Twitter and Applied Marketing Science also found that responding to a customer’s tweet boosted that shopper’s willingness to spend by up to 20 percent.
Twitter’s ceo Jack Dorsey has also been increasingly pushing Twitter’s ability to be a live news and video-streaming service. Twitter most recently introduced Periscope Producer (Twitter owns the live-streaming video service), which is a tool that lets creators steam content from a range of devices, rather than just smartphones, and is a competitor to Facebook Live.
In August, Twitter added tools that made it possible for users of all sizes (not just publishers and brands) to make money from posting video content after Dorsey told shareholders that live-streaming video and creators were among Twitter’s top priorities. “Getting video on Twitter will take us one step closer to tapping the online video budgets we are aiming for,” Dorsey said. Although Dorsey has been reinstated at the helm, it is unclear what his next move will be now that Twitter seems to be left standing at the altar.